Title: Firm innovation in the Asia and Pacific region: the role of governance environment, firm characteristics, and external finance
Authors: Ashraf Abumousa
Addresses: Financial and Administrative Control Bureau, Gaza, Palestine
Abstract: This paper investigates the impact of the governance environment, firm characteristics, and external finance on firm innovation. Cross-sectional data from World Bank Enterprise Survey (WBES) for the year 2015 were adopted to examine this influence in 4,993 firms across seven countries from East Asia and the Pacific region. While several aspects of innovation have been identified in innovation research, this paper defines firm innovation broadly to comprise the introduction of new production outputs, investment activities, and the effectiveness of innovative outputs. Further, the paper assesses the innovating firms' performance based on their prevailed business environment. The results show that firms can innovate even in the weak court system. Firms that pay bribes to public officials are more innovative. The paper also finds a significant association between some firm characteristics and innovation. Findings suggest that external finance promotes innovation better than internal finance.
Keywords: firm innovation; governance; firm characteristics; external finance; ownership structure; legal system; corruption.
International Journal of Export Marketing, 2018 Vol.2 No.3, pp.180 - 209
Available online: 29 Mar 2019 *Full-text access for editors Access for subscribers Purchase this article Comment on this article